Tuesday, 12 December 2017

Has Sugru come unstuck?

The gap between what Sugru predict and what they achieve is widening. After taking £5m off Crowdcube investors, revenues and losses are way off target.

We had Sugru down as a likely ROI for Cube investors. Now we are not so sure.

Accounts, filed 3 months late, to YE Dec16, show revenues at £4.5m against recent, downwardly adjusted projections of between £5.6m to £8m. The GPM has bombed from projected levels between 48% and 60% to 38% for the year. 

Reality has set in, as we thought it would. £1.5m in new cash has been raised in 2017, so dilution a gogo. Losses of over £3m are heading north.

New children friendly versions of their glue must help. New Mexican packaging plant paid in $ will not. Although they are at least now well positioned to help with TrumpWall. As a global trader, exchange risks will have to be well planned for - slightly better than their financial projections.

So long as the cash doesnt run out, they may yet deliver that long awaited gem for Crowdcube. If they do it will certainly be a little smaller than they first predicted. Cash is the key and more is required for 2018. 

1 comment:

  1. harshbutfair5122 May 2018 at 11:32

    You can bet your life that the directors didn't lose out in the sale. Just the poor mugs (myself included) who enabled them to develop the product by backing the company with their hard-earned cash.